News

Macy's suing J.C. Penney

August 17, 2012

Macy's filed suit Thursday against J. C. Penney, accusing the rival department store chain of interfering with its contract with Martha Stewart. A New York state judge had already temporarily blocked plans for Martha Stewart Living Omnimedia to sell its products to J. C. Penney stores, and Thursday's suit seeks to stop Penney from taking any actions that would violate Macy's agreement with Martha Stewart and to stop J. C. Penney from using product designs that Macy's argued were illegally obtained from Martha Stewart, according Bloomberg.

J. C. Penney did not comment on the lawsuit, which stems from the retailer's December announcement about its 16.6-percent stake in Martha Stewart. It also has plans to open shops next year within its stores to sell Martha Stewart-branded goods. Macy's is also suing Martha Stewart Living, claiming that the Penney deal breaches the contract Macy's has with Martha Stewart Living, which grants it the exclusive right to manufacture and sell the Martha Stewart-branded goods.